The Japanese yen weakened against the US dollar in Asian trading Wednesday, retreating from recent gains as markets cautiously positioned ahead of key risk events. The currency fell 0.3% to 151.85 per dollar as investors trimmed safe-haven positions before President Trump’s anticipated tariff announcement and Friday’s US jobs report.
The yen’s decline came despite its traditional role as a haven asset, reflecting two competing forces: rising US Treasury yields and reduced risk appetite. The 10-year US yield climbed 5 basis points to 4.36%, pressuring the yield-sensitive Japanese currency, while overall trading volumes remained subdued as participants avoided large commitments.
Market attention remains sharply focused on whether the USD/JPY pair will test the psychologically significant 152 level – a threshold that previously triggered Japanese intervention. Analysts suggest the yen’s near-term direction will hinge on whether Trump’s trade measures exceed market expectations and how global trading partners respond to potential new tariffs.
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